Purdue Pharma and Sackler Family Reach $7.4 Billion Settlement Over Opioid Crisis
Purdue Pharma and its owners, the Sackler family, have agreed to a $7.4 billion settlement aimed at resolving thousands of lawsuits that allege their painkiller OxyContin significantly contributed to the U.S. opioid epidemic. The announcement marks a critical step in addressing the public health crisis that has claimed over 700,000 lives in the past two decades.
Supreme Court Decision Prompted Revised Settlement
The new deal follows a U.S. Supreme Court decision that invalidated Purdue’s prior bankruptcy plan. The court determined that the Sacklers, who did not personally file for bankruptcy, could not benefit from legal protections intended for bankrupt entities. The earlier plan proposed immunity for the Sacklers in exchange for a $6 billion payment.
Under the updated settlement, the Sacklers will contribute $6.5 billion, with Purdue adding $900 million. Notably, the agreement allows victims and entities to opt out and pursue separate legal claims against the Sacklers, who have vowed to defend themselves in court if needed.
States Lead Negotiations on New Agreement
Fifteen states, including New York, California, Connecticut, Oregon, Texas, Florida, and West Virginia, played a key role in brokering the deal. Approval from a U.S. bankruptcy judge is required before it can take effect, and other states and local governments will also have the opportunity to join.
Connecticut Attorney General William Tong emphasized the broader significance of the settlement. “This is about more than money. No amount can undo the harm caused,” Tong stated.
Relief for Victims and Communities
A significant portion of the funds will be distributed to state and local governments to combat the ongoing opioid crisis. Additionally, between $800 million and $850 million will be allocated for individual victims of opioid addiction. Ed Neiger, an attorney representing opioid victims in the bankruptcy case, described the payments as a step toward justice.
Purdue Pharma expressed satisfaction with the outcome, stating, “We are pleased that this agreement will provide billions of dollars to compensate victims, support crisis abatement efforts, and deliver lifesaving treatments and resources.”
A Broader Push for Accountability
This settlement is part of a larger effort to hold pharmaceutical companies accountable for their roles in the opioid epidemic. Purdue is one of several companies, including distributors and pharmacy operators, that have collectively agreed to pay around $50 billion in settlements over the years.
Purdue filed for bankruptcy in 2019 under the weight of numerous lawsuits alleging it and the Sackler family misled the public about OxyContin’s addictive potential. The company pleaded guilty to criminal charges related to its marketing practices in both 2007 and 2020.
While the Sacklers have denied any wrongdoing, they have expressed regret for OxyContin’s role in the crisis. This settlement seeks to bring resolution to victims and communities still grappling with the fallout of the epidemic.
👉 Stay informed with real-time updates and in-depth analysis at NewsLink7.com. Fact-checked news that matters. Follow us 24/7, 365 days. There are no sides, just the truth. Explore more stories and stay ahead with NewsLink7.com.